U.S. Department of Labor OIG, Property company owner sentenced to prison for rental assistance fraud (USAO D-OH 07/18/2023) (2023-07-19)
Summary
A press release from the U.S. Attorney's Office, Southern District of Ohio, dated July 18, 2023, announcing that Antoine Draines, 43, of Tipp City, was sentenced by Senior U.S. District Court Judge Thomas M. Rose to 18 months in prison and ordered to pay $94,942 in restitution. The release states that, according to court documents, Draines operated Freedom for Living Property Management, LLC and from at least June 2020 until December 2020 sent Miami Valley Community Action Partnership false landlord statement forms to collect CARES Act-funded emergency rental assistance. Draines pleaded guilty to wire fraud in March 2023. The release states that Draines also fraudulently received approximately $30,000 in Pandemic Unemployment Assistance from the Ohio Department of Job and Family Services.
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“U.S. Department of Labor OIG, Property company owner sentenced to prison for rental assistance fraud (USAO D-OH 07/18/2023) (2023-07-19).”
Original at www.oig.dol.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-labor-oig-property-company-owner-sentenced-to-prison-787dfe5f6e/
, SHA-256 215957c61765d9a6f03798233b0b37f7cee30767c84b204d0b6850ba2e945065.Full text
PRESS RELEASE
Property company owner sentenced
to prison for rental assistance fraud
Tuesday, July 18, 2023
For Immediate Release
U.S. Attorney's Office, Southern District of Ohio
DAYTON, Ohio – A Tipp City man was sentenced in U.S. District Court today to 18
months in prison for defrauding a local non-profit organization. He was also ordered to
pay $94,942 in restitution.
Antoine Draines, 43, defrauded Miami Valley Community Action Partnership (MVCAP) of
rental assistance funds. MVCAP received federal funding as part of the CARES Act.
According to court documents, Draines controlled and operated Freedom for Living
Property Management, LLC in Tipp City. The company owned and served as landlord of
numerous rental properties in Dayton. According to Draines, he was, at one point, the
second-largest individual owner of Section 8 housing units in Greater Dayton.
From at least June 2020 until December 2020, Draines lied to MVCAP so that he could
improperly collect emergency rental assistance money for certain Freedom for Living
properties. Draines knowingly sent false landlord statement forms concealing the critical
fact that certain tenants were already having a substantial portion of their rent paid
through federally funded housing vouchers.
Draines pleaded guilty to wire fraud in March 2023.
In addition, Draines fraudulently applied for and received Pandemic Unemployment
Assistance benefits from the Ohio Department of Job and Family Services, resulting in
Draines wrongfully collecting approximately $30,000.
“Through a cynical, opportunistic fraud scheme, Draines, sought to steal more than
$150,000 from MVCAP by seeking emergency assistance that was not actually needed,
or not actually used, to cover the rental obligations of existing tenants,” said Kenneth L.
Parker, United States Attorney for the Southern District of Ohio. “The specific
circumstances of Draines’ COVID-related fraud only make it worse. Draines targeted
programs intended to aid those struggling to make ends meet in the face of the
pandemic, converting a global health crisis into a chance at a quick buck.”
"Mr. Draines used his position during an unprecedented national pandemic to steal
critical taxpayer money intended to help families," said Special Agent-in-Charge Shawn
Rice. “HUD OIG remains steadfast in its commitment to working with Federal
prosecutors and law enforcement partners to aggressively pursue those who engage in
activities that threaten the integrity of HUD programs.”
“Antoine Draines defrauded the Ohio Department of Job and Family Services (ODJFS) by
filing false unemployment insurance (UI) claims. Draines stole benefits intended to assist
those who became unemployed due to the COVID-19 pandemic. We will continue to
work with our law enforcement partners and ODJFS to protect the integrity of the UI
system from those who exploit these benefit programs,” said Irene Lindow, Special
Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector
General.
Joining Parker in announcing the sentence imposed by Senior U.S. District Court Judge
Thomas M. Rose were Shawn Rice, Special Agent in Charge, U.S. Department of Housing
and Urban Development, Office of Inspector General, and Irene Lindow, Special Agent in
Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
Assistant United States Attorney Rob Painter and Deputy Criminal Chief Brent G.
Tabacchi are representing the United States in this case.
###
Contact
jennifer.thornton@usdoj.gov
Updated July 18, 2023
Topic
CORONAVIRUS
Component
USAO - Ohio, Southern
File and source
- File
- 2023-07-19-Property-company-owner-sentenced-to-prison-for-rental-assistance-fraud-USAO-D-OH-07-18-2023.pdf
- Size
- 162,603 bytes
- SHA-256
- 215957c61765d9a6f03798233b0b37f7cee30767c84b204d0b6850ba2e945065
- Original
- www.oig.dol.gov